Haslam says Pilot Flying J making changes in light of FBI raid

Haslam says Pilot Flying J making changes in light of FBI raid

Posted:

KNOXVILLE (WATE) - Pilot Flying J CEO Jimmy Haslam said the company is taking multiple steps to prevent future problems and repair their reputation in light of a recent FBI raid.

Speaking for the third time in one week from the company's boardroom at their West Knoxville headquarters, Haslam said he was "embarrassed" by the information contained in the affidavit which was unsealed on Thursday.

"That was the most painful 48 hours that I've ever experienced in business," Haslam said of the two days after the FBI's release of the affidavit. "I've never been as embarrassed as I was when I read the affidavit."

On April 15, Pilot Flying J was the subject of an FBI raid after allegations surfaced that the company was not properly paying out rebates owed to diesel fuel customers.

Haslam said Monday he was working with customers to reestablish the company's reputation, which he said gone from the best to the worst in the trucking industry.

At least one company, Atlantic Coast Carriers, Inc. has sued as a result of the revelations.

Haslam said Pilot Flying J was taking five steps in light of the investigation.

First, company auditors were instructed to find out if there were any cases in which they may have overcharged a customer and find any other loopholes at the company that might allow a similar type of "irregularity" to occur.

Second, Haslam said he was putting several diesel fuel sales team members on administrative leave, pending the results of the investigations. The names of the employees were not released.

Third, Haslam said he wants to get rid of all manual transactions of diesel fuel rebates and switch all customers to electronic calculations and payments by the end of June. The unpaid rebates in question in the FBI investigation were all done manually, rather than electronically.

Fourth, the CEO said Pilot Flying J would be hiring a chief compliance officer to make sure the company is complying with laws and regulations. Haslam said the position would report directly to him.

Finally, Pilot Flying J board members hired an outside investigator to run an independent investigation into claims made to the FBI.

Last Thursday, 6 News obtained a copy of the affidavit and search warrant in the case, which provided more detail about the Pilot employees whose offices were targeted in the raid.

The court documents claim Haslam and other executives not only knew, but took part in a plan to cheat trucking companies out of money.

On Friday, Haslam held a news conference and reiterated that he had done nothing wrong and that Pilot Flying J was operating as "business as usual."


Read the Search Warrant Affidavit:

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WATE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.